I’d heard plenty of speculation that every time Obama rose in the pre-Presidential Election polls, the American stock market fell. But I wasn’t sure this wasn’t just a coincidence, so I decided to wait and see: If Obama won the Presidency, would the American stock market fall?
The hypothesis has now been tested – and proven correct.
1 day of Obama as President-elect = 486.01 point drop
2 days of Obama as President-elect = 929.49 point drop
7 days of Obama as President-elect = 1342.62 point drop
14 days of Obama as President-elect = 1628 point drop
Obama is inaugurated as President = additional one-day 332.13 point drop
Start Day Before Obama wins Election, to End Day Obama is President = 1667.51 total drop
From President Obama to Obama signs stimulus package = 2018.75 point drop
Wait! I thought Obama’s economic genius, the one that is supposed to far exceed that of old fuddy-duddy McCain’s, was supposed to save everyone’s jobs?
HOPE. CHANGE.
WHERE FOR ART THOU???!!!
——————————
Obama’s SOTU 2011…
Dollar plunges in response!
——————————
OBAMA IS INAUGURATED AS U.S. PRESIDENT: MARKET DROPS 332 POINTS, WORST FOR AN INAUGURATION DAY SINCE JFK WAS ASSASSINATED
This is what market confidence in the upcoming 4 years of Obama Economy looks like:
Alerted at Gateway Pundit. Graph from Quote.com.
The Dow Jones drops 332.13 points as soon as Obama is sworn in:
The Dow Jones industrial average (.DJ) dropped 332.13 points, or 4.01 percent, to 7,949.09. The Standard & Poor’s 500 Index (.SPX) slid 44.90 points, or 5.28 percent, to 805.22. The Nasdaq Composite Index (.IXIC) tumbled 88.47 points, or 5.78 percent, to 1,440.86.
The worst drop since 1963 when John F. Kennedy was assassinated and succeeded by his Vice-President.
Or even 1933.
In fear of the impending Obama Economy, gold prices jumped up.
And now, some previous market slaughter history:
——————————————
ON DAY ONE POST-OBAMA WIN:
On a tip from wits0 from CNN Money:
From Gateway Pundit which has more:
Full size graph at this link.
It was the biggest post-election drop and the 12th greatest single-day decline in history.
HOPE!
————————————
ON DAY TWO POST-OBAMA WIN:
On a tip from wits0 from CNN Money:
Click the above image for full size, from Gateway Pundit.
It’s the greatest two-day drop in the past 21 years, since 1987.
CHANGE!
————————————
DAYS LEADING UP TO OBAMA’S WIN (AS EVIDENCE OF PRECEDING TREND)
I’ve added more circumstantial evidence – the market was going up until the day immediately after Obama won the Election.
A ten-day history of the Dow, ending at day two of post-Obama:
Graph ends on Friday, two days after Obama’s win.
Huge coincidence there… Why did the market choose then, of all times, to reverse its rise and instead drop and drop nonstop?
————————————
A WEEK AFTER OBAMA WIN
Obama’s tax cut that he promised to give 95% of all Americans? CANCELLED.
Market continues to crash.
Graph shows days leading up to Obama’s win, straight 929-point crash in two days (end of earlier 10-day graph), short recovery, and re-continued slump. Dow closes at 8282.66 points from the 9625.28 points on the Nov 4 Election Day.
——————————————
TWO WEEKS AFTER OBAMA WINS PRESIDENTIAL ELECTION: MARKET DOWN 1628 POINTS SINCE ELECTION
Graph shows days leading up to Obama’s win (4 Nov), to 14 days after his Presidency Elect (19 Nov). Down, down, down to the abyss in 11 days of trading, with short gasps for breath in between!
Before Obama: Dow is at 9625.28 points.
14 days After Obama: Dow is at 7997.28 points.
Stock market loss: 1628 points
That is a 16.91% drop since Obama won the coming Presidency. Or an average loss of 148 points for every day of trading over 11 market days.
From Gateway Pundit:
Today the market dropped 428 points.
This is the largest post election stock market sell off in history. The market is down at least 1,000 points since the election. Today the Dow ended below 8000 points for the first time since 2003.
————————————–
OBAMA CAUSES WORST POST-ELECTION MARKET IN AMERICAN HISTORY
From Gateway Pundit, backed up by Reuters :
Year Dow S&P Nasdaq President elect
2008 -7.08 -7.43 -7.46 Barack Obama
2004 +3.51 +3.15 +2.73 George W. Bush
2000 -3.19 -4.60 -11.32 No decision: G.W. Bush v Al Gore*
1996 +2.28 +2.34 +2.31 William Clinton
1992 -0.38 -0.56 +2.02 William Clinton
1988 -2.84 -2.63 -1.34 George H. W. Bush
1984 -2.02 -1.65 -0.42 Ronald Reagan
1980 -0.51 +0.11 +0.19 Ronald Reagan
1976 -2.38 -2.21 -1.02 James Carter
1972 +1.06 -0.22 -0.34 Richard Nixon
1968 +1.35 +0.82 — Richard Nixon
1964 +0.16 +0.06 — Lyndon Johnson
1960 +1.84 +1.38 — John Kennedy
1956 -2.02 -2.65 — Dwight Eisenhower
1952 +1.20 +0.73 — Dwight Eisenhower
1948 -6.00 -7.16 — Harry Truman
1944 +0.11 +0.31 — Franklin Roosevelt
1940 +1.06 +0.81 — Franklin Roosevelt
1936 +2.79 +1.40 — Franklin Roosevelt
1932 +5.34 +8.02 — Franklin Roosevelt
1928 +2.13 +1.99 — Herbert Hoover
1924 +0.93 — — Calvin Coolidge
1920 -2.34 — — Warren Harding
1916 +0.41 — — Woodrow Wilson
1912 +1.13 — — Woodrow Wilson
1908 +5.28 — — William Taft
1904 +2.75 — — Theodore Roosevelt
1900 +7.03 — — William McKinley
1896 +5.86 — — William McKinley
Even GW Bush’s highly controversial win over Gore in 2000 didn’t have as bad a continuous drop!
——————————————
BARACK MARKET
From FOX News:
The market has fallen in six of eight days since Barack Obama won the election. The Dow Jones Industrial average has fallen from 9,625 to 8,497, a 12 percent decline. The NASDAQ and S&P 500 have experienced similar declines.
The Wall Street Journal and others have labeled the drop the “Barack Market,” reflecting the higher taxes on everything from capital gains and dividends to income and increased regulations.
——————————————
Now why would the market be so paranoid about an Obama Presidency?
After all, Obama has only promised to tax them more, tax anyone who buys shares more, intentionally makes energy costs “skyrocket” and bankrupt the coal industry.
Or maybe the market traders are all racists.
But hey, he’ll fix the economy for sure, right you 52% who picked him?
Tags: Barack Obama, Dow falls 300, Dow falls 500, Obaam stock market, Obama Dow, Obama economy, Obama inauguration market crash, President Obama, President Obama market crash
THE SCOTTTCAST 
November 6, 08 at 9:44 am
Lovely ain`t it. N it`s beg-inning:
Bloomberg: NYC Income Tax Could Rise 15 Percent
http://wcbstv.com/local/michael.bloomberg.income.2.856839.html
November 6, 08 at 10:28 am
Ａｆｒｉｃａ ａｎｄ Ａｓｉａ ｒｅｊｏｉｃｅ ｏｖｅｒ ｔｈｅ ｎｅｗ Ｐｒｅｓｉｄｅｎｔ． Ｓｏｍｅ Ｍａｌａｙｓｉａｎ ｐｏｌｉｔｉｃａｎｓ ａｒｅ ａｌｓｏ ｏｖｅｒ ｔｈｅ ｍｏｏｎ． Ａｓ ｉｆ ｈａｖｉｎｇ ａ ｎｏｎ－ｗｈｉｔｅ President makes any difference to America’s policy. Big surprise awaiting.
November 6, 08 at 11:08 am
The press is spinning it as a fall after the surge in response to the news of the Obaman’s victory.
November 6, 08 at 11:31 am
Obama is just a bag of hot air repeating the word “change” without any substance behind it. Change, change, change, change, change. Change what? Change whom? How can he be sure it won’t change for the worse? Change!
But the Repubs have shown themselves to be incapable of defeating even a platform with more holes than a golf course – so Obama deserves the Presidency.
November 6, 08 at 11:42 am
Unfortunately, I almost agree with you… That McCain’s lame run deserved to lose for being a RINO instead of a neocon Elephant. See Ann Coulter’s article for more on that.
But Obama had the following advantages as well: Bush’s failures tarnishing the GOP (though the Democratic Congress is largely to blame as well – 7% approval rating is even lower than Bush’s!); the media’s complicity in refusing to investigate or publish negative stories (Ayers, ACORN, Khalidi, Hamas support, bankrupt coal remarks) while constantly praising Obama; Obama’s $700 million in campaign funds to McCain’s $100 million (and need I remind you that Obama went back on his highly publicized pledge to use only public funds); the automatic vote of most Blacks regardless of policy.
And yet, he only managed just over half the popular vote instead of the largest landslide in history. I blame that obviously biased Internet media and Conservative blogs.
And just because one street beggar is slightly less stinky than the other, doesn’t mean either of them is qualified to perform open heart surgery. So your analogy itself is full of holes.
November 6, 08 at 2:34 pm
Now that Obama Won, One Thing is Certain — For Your Investments…
Dear Fellow American,
Now that Barack Obama has won the election, one thing is certain… he will preside over the largest expansion of the government’s role in the economy since the 1930s — with enormous consequences for your investments.
This “New New Deal,” as some Democrats are already calling it, may well have the same result as the original one: to turn a sharp, painful recession into a long Depression.
Will that set the stage for a GOP president in 2012 — the way ’70s stagflation under Jimmy Carter set the stage for Ronald Reagan? I doubt it. More likely, Obama will be able to parlay the hard economic times into a second term.
How? The same way FDR did… by blaming everything that happens on his watch on his predecessors. The worse things get, the more the Obamacrats will blame it on “eight years of Republican deregulation, tax cuts and greed,” calling for even more government intervention as the solution.
And the media, of course, will back them up.
-Dick Morris, Global Investors
November 6, 08 at 2:43 pm
“And just because one street beggar is slightly less stinky than the other, doesn’t mean either of them is qualified to perform open heart surgery. So your analogy itself is full of holes.”
LOL.
Actually, it isn’t, considering the patient here ONLY has a choice between either “street beggars” (apart from Cynthia McKinney).
The real blame for Republican defeat lies with people like yourself (and Ann Coulter) who have not yet woken up to the fact that the world (and the US electorate) have changed. Your steadfast refusal to accept middle-of-the-road candidates and absolute insistence on the WASP, bible-thumping, family values kind of politician to (so-called “appeal to the grassroots”) led to McCain to pick the idiot Palin, turned the campaign into a laughingstock and could only lead to his subsequent downfall.
But go on burying your head in the sand and believe that McCain lost because he “was not conservative enough”. Keep pimping the bible thumping rednecks as saviors. You’ll win around 20% (and shrinking) of the hardcore midwestern bible-belt vote and lose the remaining 80%.
Eventually, you’ll alienate even the new breed conservatives of the future like Charles Johnson of littlegreenfootballs.
November 6, 08 at 2:47 pm
This is a good piece by David Frum.
http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/11/05/david-frum-republicans-face-choice-between-two-paths-to-revival.aspx
Sums it all up really:
So the question for the GOP is: Will it pursue them? To do so will involve painful change, on issues ranging from the environment to abortion. And it will involve potentially even more painful changes of style and tone: toward a future that is less overtly religious, less negligent with policy, and less polarizing on social issues. That’s a future that leaves little room for Sarah Palin – but the only hope for a Republican recovery.
November 6, 08 at 2:51 pm
Islamic conservatism is the way:
Sunday, 26 October 2008
US studying features of Islamic banking
RIYADH (Arab News, 26-Oct-08): The US government is currently studying the salient features of Islamic banking to ascertain how far it could be useful in fighting the ongoing world economic crisis, Robert M. Kimmitt, US deputy secretary of the Treasury, said at a press conference held at the US Embassy here yesterday.
Kimmitt, who is on an official visit to the Kingdom, also held discussions with Finance Minister Ibrahim Al-Assaf. Today, he is scheduled to meet Saudi Arabian Monetary Agency (SAMA) Gov. Hamad Al-Sayari, Saudi Arabian General Investment Authority (SAGIA) Gov. Amr Al-Dabbagh, Prince Alwaleed bin Talal, chairman of the Kingdom Holding Company, and Saudi investors and bankers. He said that the agenda for the G-20 summit to be held in Washington on Nov. 15, has to be carefully prepared since important topics are to be discussed in just one day. “I am not sure that Islamic banking will also be itemized in the agenda, but it is a subject that is often dwelt in the public and private sectors,” he noted. He said that experts in the US Treasury Department are currently learning the important features of Islamic banking.
http://gifc.blogspot.com/2008/10/us-studying-features-of-islamic-banking.html
November 7, 08 at 12:36 am
6 Nov 11.32 a.m.
Dow 8,899.29 Down 239.98 (2.63%)
Nasdaq 1,640.35 Down 41.29 (2.46%)
S&P 500 925.61 Down 27.16 (2.85%)
November 7, 08 at 12:39 am
11:30 am : The stock market continues its downward trend. Weakness remains broad based as all ten of the major economic sectors are showing losses.
Treasuries are trading lower, too. Their losses come despite falling stock prices, though their levels are improved from earlier levels. The 10-year Note is down 13 ticks currently.
Crude oil futures are off substantially. Prices are currently down by more than 7% to $60.50 per barrel. Oil’s declines during this session and the prior session have it down 11% week-to-date, or 59% off its record high.
November 7, 08 at 4:09 am
Under whose watch did the dow initially tank? Would it be beyond the investor class to artificially pump up the stock market on the days leading up to the election and let it tank on subsequent days? Free market, baby. Suck it up.
November 7, 08 at 4:50 am
fork – investors “bet” on the future, 3-6 months out. thats what i do. i buy calls on really down days, for delivery 3-6 months out, if i think future will be “better”. i buy puts and short on up days when i think that economy will be “bad”. what we saw in sept/oct was estimate of jan/mar timeframe, with BHO victory baked into cake. now, with that a certainty, when the regulatory and legislative onslaught starts, that has been promised, in the late spring (mar/apr 09), the economy will begin an inexorable decline. what may change things is some indication that BHO was lieing when he made those economy-choking promises. thats what smart money is waiting for. take it off table, see how serious BHO was, hopefully he’ll be a liar, and then get back in when coast in clear, early summer 09. til then, short and put are best bet. on the few up days. should be in relative tight range until that can be ascertained, most folks staying long cash. markets hate uncertainty. so what is going on now is “betting” on, meaning waiting for the answer to:
a) BHO is a liar, and not crazy or
b) good lord, he actually MEANT it!
November 7, 08 at 4:54 am
i hope he means it. wall st. has been reckless and had us by the balls too long. you at least quasi wealthy people whining? you’ll have to get a porsche instead of a maserati? my heart pumps purple piss for your ilk.
November 7, 08 at 5:01 am
well, if you mean wealthy. owning my own business that takes about 70-80 hours a week, living in a 1900 square foot house, driving an 11 year old car, and never having spent more than 120 bucks for a suit, paying for my own health insurance for my 6 year old son who has CP, putting myself thru college working 30 hours a week, and school 40 hours a week, and saving every nickel i ever had, to provide for my family, then guilty. i actually went bankrupt when my wife left me with my older son as s ingle parent about 8 years ago. everything since was just hard work. and saving. not spending, investing, deferring gratification, taking care of ones family first, then saving for their future.
my heart is saddened for black hearted folks like you. you really dont know what’s good about life dude. i feel very sorry for you, but i’d lend ya a hand if you asked, no matter how many cars i had or didnt.
November 7, 08 at 8:52 am
Las Vegas Sands Plunges on Default, Bankruptcy Risk
http://www.bloomberg.com/apps/news?pid=20601087&sid=aws07wpBjjZI&refer=worldwide
November 7, 08 at 8:57 am
“i hope he means it.” – fork
`at`s riiight, he`s gonna pay your mortgages and fuel bills….. when the pigs fly
November 7, 08 at 9:23 am
you are at best juvenille, at worst infantile! your feeble attempt to blame obama’s win as the cause for the recent slump in the US stockmarket is just that. FEEBLE. LAME. It clearly shows your lack of understanding with the problems plaguing the US economy. To add to that you are pompous and presumptious often choosing to ignore facts and common sense.
Read my lips; the downturn was the result of the eight years of Republican’s bumbling economic policies!
still don’t get it? to put it simply for you…
The CREDIT CRUNCH emanated fm ‘main street’s’ housing market which spread to wall street. No one expected the liquidity squeeze to get so bad. But it did and that terminated the buyout wave, which in turn sent the US stockmarket into a tailspin which turned into a bear-market contagion that spread to international markets like wild fire!
a big hiccup in the housing market led to defaults in sub prime mortgages, this lead to a hiccup in the corporate loan market which then lead to junk bond defaults, as borrowers found themselves unable to conclude deals they had counted on.
Expecting these ‘problems’ in the US economy to be solved in a day, week or year is even more absurd!!!! Unless you live in a world of superheroes where superman/spiderman exists.
i rest my case.
November 7, 08 at 9:45 am
I’ll admit that this is just an observation of a trend that has no solid evidence.
But here’s the thing about the stock market – perception defines reality.
If shareholders think Obama will be bad for the market, they will sell their shares. This will lead to the market actually becoming bad.
If it’s just a total coincidence between Obama and the market, then why did the market rise on Election Day, but fall when Obama won? If the investors had been rooting for Obama, don’t you think the market would have surged to continue the Election Day rise?
November 7, 08 at 9:49 am
Taxes are not smart politics. Let us never forget that Barack Obama promised to cut taxes on 95% of Americans. Now, many people realize that what he was artfully saying was that approximately a third of the population would be getting checks in the mail from Uncle Sam. But many did not look at where he intends to get the money to hand out in these welfare payments. They are about to find out.
But what President-elect Obama should consider is how the people who elected him reacted to tax increases where they were asked directly to vote on them this year:
• Obama won Virginia in large part because of votes in northern Virginia and by winning Loundon County. At the same time they were voting for him, they were defeating a meals tax by a very large margin.
• Colorado was a media darling, moving from the GOP to Obama. But a host of new taxes were all defeated at the same time. And, a move by the liberal Democrat Speaker of the Colorado House to repeal the state’s Taxpayer Bill of Rights was crushed.
• In New Hampshire, another Obama state, voters expressed their hostility to ever-rising taxes and spending by voting in favor of a spending cap in Rochester by a 70 to 30 margin, despite an expensive NO campaign by union powerbrokers.
There are many other examples. But the point is clear. Break your word Mr. President by hiking taxes and you will face an electorate that can become very surly and very unforgiving.
November 7, 08 at 10:02 am
In a receding economy and aided by a political monopoly, President Obama is going to prove unable to resist his fetish for increased taxation and eco-regulatory strangulation. In a dangerous time, his vanity will lead him to grant legitimacy to nations that wish America ill. When an Obama presidency with majorities in the House and Senate ends in economic calamity, emboldened international foes, or both—as history wearily tells us it must—then the healing can begin.
…For the Democrats, it was an act of sublime short-term calculation to trot out Obama. A man whose easy, telegenic charm was able to narcotize into irrelevance all the facts that would have rendered him unelectable in anyone else’s skin. The sewage of slum lords, communist sympathizers and domestic terrorists swirl about his ankles. And yet a flash of smile and a few words in his soothing baritone captured the American imagination and soothed a majority of the electorate. But now the work is going to start. Results are going to matter, and if there’s one fact about Barry that the media was unable to obscure, it’s that he is a candidate truly uncluttered by moderation.
He is the proto-Democrat; liberalism’s gleaming new flagship. And that’s going to be a long-term problem for Democrats in ways they can scarcely now imagine.
November 7, 08 at 10:02 am
I bet anyone from Republican for President.. as long as it is a Republican is good for the market then. Republican is good for business… I am very sure. How the stock market came into this mess again? Democrat left with a budget surplus, and Republican did well to create a record deficit. I am sure that is very good, in business sense. I am so enlightened reading your propagandist materials.
Perception defines reality? That sounds like something smart, coming from you Scott.
If you are yet to aware, the market will only go down, it yet to reach rock bottom and is predicted to hit all low after 1st quarter next year. I bet you will have a field day at that time relating the market situation with Obama presidency by then. Enjoy.
ps: Trying to hard to prove a point, however ridiculous it is.. I must give that to you. I certainly have no balls (and braincell) to do that.
November 7, 08 at 10:09 am
It’s difficult to tell how much utterly unchecked leftism America will be willing to endure, or for how long. But one thing for certain is that Obama, in tandem with Pelosi/Reid is the greatest gift the Republicans and conservatives everywhere could have been given. Over the next four years, there will be no political ‘moderation’ in Obama to muddy the waters, confuse his identity, or cast doubts about who’s to blame for what.
It’s an odd (and maddening) trait of elected conservatives that they come alive almost exclusively in the face of opposition. They define themselves most persuasively when juxtaposed against runaway state largesse, oppressive economic conditions, or the sheer buckling incompetence of Carter-esque liberalism. Conversely, as they were and would have been with McCain, they’re on their weakest footing when squandering intellectual resources and goodwill in the defense of ideologically compromised leadership. And now they’ve been blessed with an undiluted, unambiguously radical leftist with which they have four years to contrast themselves and make their case.
Disappointed as some will be, Obama’s win is not surprising in the present climate. Sadly, Cavuto had it right on McCain’s lack of economic conviction. With one hand committed to vague free-marketisms and the other dealing out murky condemnations of ‘Wall Street greed’, he was unable to deliver a coherent counter-punch that addressed the Democrat-driven interventions that birthed the subprime crisis.
In a painful campaign video from Wisconsin, a famously enraged voter declares “I’m mad!” about the “socialists taking over the country”. The audience was in a fervor over the gentleman’s comments and salivating for partisan red meat. McCain promptly deflated the crowd by stammering that he would again ‘reach across the aisle’ and work with everyone to fix the problem. The silent groan of agony that settled on the leadership-starved crowd was palpable. Obama by comparison, was consistent and on message with his serial deceptions and class warfare; but at least he was consistent and on message.
An Obama presidency will certainly mean short-term pain. America is about to learn some very hard lessons, but she will learn them, and conservatives have been handed an unprecedented opportunity to define themselves, regroup, sharpen their ideological knives and come out swinging. And as a character from Lewis’s Narnia observed after breaking a demagogue’s oratory hypnosis by forcing himself to step on hot coals, “Pain is very good at dispelling certain kinds of magic.”
November 7, 08 at 5:33 pm
Market is projected to go down anyway, whether or not Obama or McCain is the president. The worst is yet to come. 2009 will be hard times as predicted by economists. the most optimistic model predicts a very slow recovery in 2010.
According to your analogy scott, i would then blame calvinism for causing credit crunch.
November 7, 08 at 5:52 pm
Hey, anything can make the market rise or fall, so who’s to say?
But some things make more falling than rising. We’ll see in the next few days – if the businesses think Obama is good news, then the market shouldn’t be diving even more than it has been during these hard times.
November 7, 08 at 6:06 pm
There, I’ve added more circumstantial evidence into the post – the market was going UP until the day immediately after Obama won the Election.
Huge coincidence. Why did it choose then to drop and drop nonstop?
November 7, 08 at 7:34 pm
Did you even follow the financial news? There was a stock market rally a few days prior to the election because of growing confidence that Obama was leading in the polls thus stood a high chance of winning. People were confident of his policies and this promoted the boost. Do I need to post a link? Come on, it’s on bloomberg/CNBC.
And don’t tell me to post some link again! It’s on archive on nearly all the financial websites! So go make yourself useful and go google on the reason of the stock market rally prior to election!
The reason the stock market dipped after the win is due to profit taking and certainly NOT due to Obama. I don’t know why it’s SO difficult for you to understand. I thought I explained it to you earlier. An election will not save the stock market nor the economic crisis in a day! In addition to that the recession has YET to hit and will not go away with the wave of a magic wand my dear scott. The recession has yet to unleash its full fledged wrath as we speak. Do you know the worst is yet to come?
Please, do everyone a favour here (especially the ones reading your blog like it was the bible) do them justice and for godsake TUNE in to bloomberg/CNBC and get your facts right!
It took years of doing and certainly it will take years of undoing this mess that the republicans have set up time and time again. Do you even know your history? Everyone knows the republicans have a track record of poor governence when it comes to budget management!
GET YOUR FACTS RIGHT SCOTT! You are misleading people.
November 7, 08 at 7:57 pm
you want evidence lemme give you scott
Commodities falter, gold prices tumble
NEW YORK: Gold prices and most other commodities tumbled Thursday, reflecting steep losses on Wall Street and a strengthening dollar.
Commodities prices have tended to mirror the direction of the equities markets in recent weeks, and they continued to do so on Thursday.
What’s more, the U.S. dollar strengthened considerably against most other major currencies, including the euro and the British pound, after a series of interest rate cuts by central banks overseas.
When a central bank cuts interest rates, it tends to weaken that nation’s currency, meaning the dollar typically trades higher against it.
Commodities are often used as a hedge against inflation, so when the dollar strengthens, investors tend to flee commodities.
Analysts expect the dollar to continue to climb.
“There is more room to go in Europe to cut rates, as opposed to the U.S., which has very little room to go,” said Tom Pawlicki, commodities analyst with MF Global Research in Chicago.
“Also, the fact that the credit crisis is in the early stages of spreading to Europe and Asia, I think that could continue to drive the dollar.”
Gold for December delivery dropped $10.20 to $732.20 an ounce on the New York Mercantile Exchange.
Other precious metals prices also fell. December silver tumbled 40 cents to $10.055 an ounce, while December copper futures shed 9.35 cents to $1.7255 a pound.
On Wall Street, a bleak outlook from computer gear maker Cisco Systems and concerns about widespread economic weakness sent the major stock indexes down more than 4 percent.
The Dow Jones industrial average tumbled more than 440 points.
A strengthening dollar and dim economic reports also weighed on energy prices. Light, sweet crude for December delivery fell 7 percent, or $4.53, to settle at $60.77 a barrel.
Prices tumbled as low as $60.16 at one point, a level last seen in March 2007.
Oil prices have now fallen nearly 60 percent since peaking at $147.27 a barrel in mid-July.
Grain prices mostly fell on the Chicago Board of Trade.
December wheat futures fell 14.75 cents to $5.225 a bushel, while corn for December delivery fell 12.25 cents to $3.78 a bushel.
January soybeans rose 2 cents to settle at $9.06 a bushel, after falling as low as $8.83 earlier in the session.
November 7, 08 at 7:59 pm
US stocks tumble, lose 10% in two-day rout
NEW YORK: Wall Street plunged for a second day, triggered by computer gear maker Cisco Systems warning of slumping demand and retailers reporting weak sales for October.
Concerns about widespread economic weakness sent the major stock indexes down more than 4 percent Thursday, including the Dow Jones industrial average, which tumbled more than 440 points.
The two-day plunge totals about 10 percent for the major indexes.
Paper losses during that time in U.S. stocks came to $1.2 trillion, according to the Dow Jones Wilshire 5000 Composite Index, which represents nearly all stocks traded in America.
Comments from Cisco that it saw a steep drop in orders in October and reports from retailers that consumers are skipping trips to the mall provided fresh evidence of the economy’s struggles.
While sales at Wal-Mart Stores Inc. benefited from bargain-seekers, some specialty retailers posted huge drops in monthly sales.
Adding to investors’ list of worries, the Labor Department said the number of people continuing to draw unemployment benefits jumped to a 25-year high, increasing by 122,000 to 3.84 million in late October.
It marked the highest level since late February 1983, when the economy was being buffeted by a protracted recession.
While new claims for unemployment benefits dipped by 4,000 to a seasonally adjusted level of 481,000 last week, the levels remain elevated.
The findings added to the market’s unease ahead of Friday’s October employment report, a widely watched barometer of the economy’s health.
“I think everybody kind of simultaneously – the consumers and businesses – is tightening belts so that’s triggering a reasonably precipitous slowdown that’s widespread,” said Ed Hyland, global investment specialist at J.P. Morgan’s Private Bank.
“This is something that we haven’t really seen, this level of this rapid and significant pullback both in the market and the economy.”
Thursday’s rout follows a drop of more than 5 percent in the market Wednesday that saw the Dow plunge nearly 500 points as investors fretted that weak readings on employment and downcast profit forecasts and job cuts from financial companies to steelmakers signaled broad economic troubles.
Still, the market’s two-day slide follows an enormous run-up since last week so some pullback was expected, analysts said.
Through the six sessions that ended Tuesday, the benchmark Standard & Poor’s 500 index surged 18.3 percent.
Richard Campagna, chief investment officer at Provident Investment Counsel in Pasadena, California, contends the market’s pullback isn’t surprising given the size of the recent run-up.
He said the weak economic readings shouldn’t come as a surprise either, given a freeze in credit markets that has disrupted lending and other economic activity since September.
Campagna said the light volume and overall fear among investors is exacerbating the market’s volatility.
“Some people are pushing this market around more than they should be out of fear,” he said. Many everyday investors are sitting on the sidelines, he said.
“Everyone has been shellshocked with the moves in the market.”
The Dow fell 443.48, or 4.85 percent, to 8,695.79 after falling as much as 502 in the final five minutes of trading. The blue chips remain 186 points above 8,451.19, their Oct. 10 closing low from the market’s yearlong decline.
Broader stock indicators also posted sharp losses.
The Standard & Poor’s 500 index fell 47.89, or 5.03 percent, to 904.88.
The Nasdaq composite index fell 72.94, or 4.34 percent, to 1,608.70.
Over the past two days, the Dow is down 9.7 percent, the S&P 500 index is off 10 percent and the Nasdaq is down 9.6 percent.
The Russell 2000 index of smaller companies fell 18.80, or 3.65 percent, to 495.84 on Thursday, bringing its two-day decline to 9.2 percent.
Declining issues outnumbered advancers by about 5 to 1 on the New York Stock Exchange, where volume came to 1.53 billion shares.
Analysts noted that the volume of the week’s declines has been light, indicating that investors aren’t rushing to sell positions.
The latest round of economic worries largely overshadowed interest rate cuts by central banks in Europe as stocks there tumbled after the moves.
The Bank of England slashed its key interest rate by a bold 1.5 percentage points Thursday; the Swiss Central Bank cut its own key rate by a surprising half-point; and the European Central Bank lowered its key rate by a half-point.
Britain’s FTSE 100 fell 5.70 percent.
Germany’s DAX index fell 6.84 percent
France’s CAC-40 fell 6.38 percent.
In Asian trading, Japan’s Nikkei index closed down 6.53 percent, and Hong Kong’s Hang Seng Index fell 7.08 percent.
Cisco’s comments added to investors’ nervousness and weighed on the technology-heavy Nasdaq.
The world’s largest maker of computer networking gear said orders declined sharply last month, suggesting to the market that the weak economy and tight credit markets are taking a larger-than-expected toll on many companies around the world. Cisco fell 45 cents, or 2.6 percent, to $16.94.
A range of industries have been bruised by the economy.
Japanese automaker Toyota Motor Corp. reduced its annual earnings forecast Thursday to less than a third of what it was in previous fiscal year.
Toyota tumbled $13.28, or 16.5 percent, to $67.09. Other automakers fell ahead of quarterly results due Friday.
General Motors Corp. fell 76 cents, or 13.7 percent, to $4.80, while Ford Motor Co. fell 11 cents, or 5.3 percent, to $1.98.
Among retailers, Wal-Mart fell 64 cents to $53.49, while specialty names Limited Stores Inc. fell $1.10, or 9.6 percent, to $10.41 and Ann Taylor Stores Corp. fell $3.09, or 26 percent, to $8.93.
The drop in oil weighed on energy stocks. Exxon Mobil Corp. fell $3.73, or 5.1 percent, to $69.96, while Chevron Corp. fell $4.77, or 6.4 percent, to $70.11.
Some names seen as safer bets in a rough economy saw more moderate selling. Procter & Gamble Co., the maker of Tide detergent and Pampers diapers, fell 46 cents to $63.35.
Coca Cola Co. slid 24 cents to $44.49.
The pair of stocks showed the smallest percentage declines of the 30 stocks that make up the Dow industrials.
Hyland said the latest economic reports are a reminder that, while the market might be off its Oct. 10 lows following an array of government moves to revive lending and shore up confidence in the markets, the medicine will take some time to work.
“I think that we’re in a bottoming process but the market will tend to have three, four, or five bottoms as it goes through the bear market,” he said.
Bank-to-bank lending rates fell for the 19th straight day, a sign that banks are becoming more willing to lend. The London Interbank Offered Rate, or Libor, for three-month dollar loans dipped to 2.39 percent from 2.51 percent.
The three-month Treasury bill, considered the ultimate safe asset, saw its yield dip further to 0.30 percent from 0.42 percent late Wednesday.
In general, a lower yield means higher demand, but it is also affected by the federal funds rate.
The yield on the benchmark 10-year Treasury note fell to 3.70 percent from 3.73 percent late Wednesday.
November 7, 08 at 8:00 pm
Oil prices near US$60 on recession fears
HOUSTON: Oil prices neared $60 a barrel Thursday, their lowest point in about a year and a half, as a growing number of economic reports point to a long and painful recession.
The number of Americans continuing to draw unemployment benefits surged to a 25-year high, the Labor Department said Thursday, and the U.S. retailers saw their sales plummet last month to the weakest October level since at least 1969.
When the economy slows, the demand for energy fades.
One side effect: the price of gasoline has tumbled from summer highs, when a gallon cost more than $4.
Experts say gasoline could cost half that by year’s end.
Light, sweet crude for December delivery fell 7 percent, or $4.53, to settle at $60.77 a barrel on the New York Mercantile Exchange.
Prices tumbled as low as $60.16 at one point, a level last seen in March 2007. In London, December Brent crude fell $4.44 to settle at $57.43 on the ICE Futures exchange.
Oil prices have now fallen nearly 60 percent since peaking at $147.27 a barrel in mid-July.
They surged above $70 Tuesday, but a crude sell-off began the following day when prices dipped 7.4 percent.
Analyst and trader Stephen Schork said the sharp decline is fallout from a yearlong bubble.
Some investors and lawmakers in Washington have blamed speculative traders for bidding up the price of oil.
“It’s the old adage: markets fall faster than they rise. And this is exactly what we’re seeing right now,” Schork said.
“We knew it was a bubble on the way up. People stopped acting rationally. High prices became the justification for high prices. Fundamentals be damned.”
Also pressuring crude prices Thursday were interest rate cuts across Europe, where economic leaders were trying to spark growth.
Oil analyst Peter Beutel of Cameron Hanover said crude was falling because of a stronger dollar, renewed fears of recession and weaker equities markets.
“Oil prices … have been searching for a bottom for the last several days,” a Cameron Hanover report said.
And despite a government report showing storage levels in the U.S. rose less than expected last week, prices for natural gas fell, too.
Meteorologist predictions of a cold winter have been pushing up natural gas prices recently.
In its weekly report, the Energy Department’s Energy Information Administration said natural-gas inventories held in underground storage in the lower 48 states rose by 12 billion cubic feet to about 3.41 trillion cubic feet for the week ending Oct. 31.
Analysts had expected a boost of between 20 billion to 25 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
“The (EIA) report was kind of bullish actually and the market went the other way,” said Phil Flynn, an analyst at Alaron Trading Corp.
“It’s just the overall malaise. Earnings today haven’t been anything to write home about. We’re readjusting commodities based on recessionary-like numbers.”
Wall Street slumped again Thursday, sending stocks lower for a second day after Cisco Systems Inc. reported crumbling demand.
The Dow Jones industrial average fell about 443 points, or 4.9 percent.
The dollar strengthened after the European Central Bank cut its key rate by half a percentage point to 3.25 percent Thursday, joining the Bank of England, Swiss and Czech central banks as they confront a looming recession.
The ECB announced the cut from 3.75 percent shortly after the Bank of England lowered its key interest rate by a startling 1.5 percentage points to 3 percent.
The Bank of England’s cut was more than the full percentage point that most analysts had predicted and the biggest cut in 27 years.
Commodities such as oil are used as a hedge against inflation and a weak dollar.
When a central bank cuts interest rates, it tends to weaken that nation’s currency, meaning the dollar typically trades higher against it.
When the dollar strengthens, it makes oil more expensive to buyers dealing in other currencies.
But the continuing parade of dim economic reports weighed on global markets and on the price of oil as well.
Retailers’ October sales figures showed consumers pulling back spending sharply.
A Labor Department report said the number of people continuing to draw unemployment benefits jumped by 122,000 to 3.84 million in late October.
It was the highest level since late February 1983, when the country was struggling to recover from a long and painful recession.
Other economic indicators out of the U.S. this week suggest the world’s largest economy may be heading for its worst recession in decades.
A Commerce Department report Tuesday said factory orders fell 2.5 percent in September from August, much worse than analysts had predicted.
On Monday, U.S. manufacturers reported poor figures for October, showing the worst reading in more than a quarter century.
In other Nymex trading, gasoline futures fell 8.8 cents to settle at $1.336 a gallon.
Heating oil dropped 11 cents to settle at $1.942 a gallon while natural gas for December delivery fell 27 cents to setttle at $6.979 per 1,000 cubic feet.
November 7, 08 at 8:02 pm
http://www.economist.com/finance/displayStory.cfm?source=hptextfeature&story_id=12552204
THEY are, says a former securities regulator, a “Ponzi scheme” that no self-respecting firm should touch. Eric Dinallo, the insurance superintendent of New York state, calls them a “catastrophic enabler” of the dark forces that have swept through financial markets. Alan Greenspan, who used to be a cheerleader, has disowned them in “shocked disbelief”. They have even been ridiculed on “Saturday Night Live”, an American television show.
Until last year credit-default swaps (CDSs) were hailed as a wonder of modern finance. These derivatives allow sellers to take on new credit exposure and buyers to insure against companies or governments failing to honour their debts. The notional value of outstanding CDSs exploded from almost nil a decade ago to $62 trillion at the end of 2007—though it slipped to $55 trillion in the first half of this year and has since continued to fall. Traded privately, or “over the counter”, by banks, they seemed to prove that large, newfangled markets could function perfectly well with minimal regulation.
That view now looks quaint. Since September a wave of large defaults and near-misses, involving tottering banks, brokers, insurers and America’s giant mortgage agencies, Fannie Mae and Freddie Mac, has sent the CDS market reeling. Concern that CDSs are partly to blame for wild swings in financial shares has frayed nerves further.
The failure in mid-September of Lehman Brothers showed that the main systemic risk posed by CDSs came not from widespread losses on underlying debts but from the demise of a big dealer. The aftershock spread well beyond derivatives. Almost as traumatic was the rescue of American International Group (AIG), a huge insurer that had sold credit protection on some $440 billion of elaborate structures packed with mortgages and corporate debt, known as collateralised-debt obligations (CDOs). Had AIG been allowed to go bust, the swaps market might well have unravelled. Similar fears had led to the forced sale of Bear Stearns in March.
Foul-ups with derivatives are hardly uncommon, but CDSs have been causing particular consternation. One reason is the broad threat of “counterparty risk”—the possibility that a seller or buyer cannot meet its obligations. Another is the rickety state of back-office plumbing, which was neglected as the market boomed. A third is that swaps can be used to hide credit risk from markets, since positions do not have to be accounted for on balance-sheets. They make it beguilingly easy to concentrate risk. AIG could have taken the same gamble in other ways, for instance by borrowing heavily to buy mortgages. But the CDS route was quicker and less visible.
If counterparties pay up, CDSs are a zero-sum game: what the seller loses, the buyer gains. Counterparty risk upsets the symmetry. It is tempting to write lots of swaps in good times, when pay-outs seem improbable, without putting aside enough cash to cover the potential losses. Being AAA-rated, AIG was able to post modest margin requirements—the deposit it had to pay against the risk of the contract being triggered. When its credit rating was cut, a lot more margin was suddenly demanded and it had to turn to the public purse.
“We sent out a signal that the stronger you were, the crazier you could be,” says Mr Dinallo: highly rated companies were allowed to write reckless volumes of swaps. Originally conceived as a means for banks to reduce their credit exposure to large corporate clients, CDSs quickly became instruments of speculation for pension funds, insurers, companies and (especially) hedge funds. And with no fixed supply of raw material, unlike stocks or bonds, bets could be almost limitless.
The industry is scrambling to limit the damage. Robert Pickel, head of the International Swaps and Derivatives Association (ISDA), says he is determined to combat “misconceptions” about CDSs. The true amount at risk, after cancelling out offsetting exposures, is only about 3% of their notional value (that is $1.6 trillion, even so). Opaque as CDSs may be, they are less complex than CDOs. In essence, they unbundle the interest on a debt from the risk that it is not paid back. Selling credit protection is similar to writing certain kinds of common options on shares.
The root cause of the crisis, Mr Pickel argues, is bad mortgage lending, not derivatives: swaps on subprime mortgages grew unstable because the loans themselves were dodgy. Last month JPMorgan’s Blythe Masters, one of the market’s founders, urged regulators to distinguish between tools and their users: “Tools that transfer risk can also increase systemic risk if major counterparties fail to manage their exposures properly.”
That will not reassure everyone. Still, there has been “more fear than facts” around the CDS market, says Brian Yelvington of CreditSights, a research firm. Essentially, it provides fixed-income investors with “a liquid way to do what equity and futures participants have been doing for years: to take a negative as well as constructive view on credit.”
Furthermore, the market has held up better than many expected. The process for settling claims after Lehman’s default and the government’s seizure of Fannie Mae and Freddie Mac “performed as designed”, says Darrell Duffie of Stanford University. Only $6 billion had to change hands in the Lehman auction, overseen by ISDA, because most payments had already been made as swap-sellers marked their positions to market; in all, $21 billion had been theoretically at risk. Margin payments are widely thought to cover two-thirds of total CDS exposure.
The CDS market has remained fairly liquid throughout the crisis, even as cash markets dried up. At the moment, derivatives spreads reflect fundamental values more accurately than those in corporate-bond markets, reckons Tim Backshall of Credit Derivatives Research (CDR). Swap spreads have become a key barometer of financial health. They provided an early indicator of trouble at investment banks, although they became distorted as more and more firms scrambled to hedge or speculate.
But if credit swaps were not a primary cause of the past year’s conflagrations, they were, in certain respects, an accelerant. Financial eggheads used them as building blocks in “synthetic” CDO-type structures, which are based on CDSs rather than actual bonds. The market value of some tranches has slumped to less than ten cents on the dollar. And CDSs share some problems with securitisation. A paper last year by economists at the Federal Reserve Bank of New York concluded that they “give banks an opaque means to sever links to their borrowers, thus reducing lender incentives to screen and monitor.”
Some fear that worse may be yet to come. The failure of another big actor in the market would send dealers and other counterparties scurrying to replace trades, almost certainly at a higher cost. Replacing those struck with Lehman, as spreads widened after its bankruptcy filing, is thought to have cost some dealers upwards of $200m each.
That risk remains, judging by CDR’s counterparty-risk index, which measures the health of CDS dealers (see chart 1). The next shock could be the failure of a hedge fund with a big swap book, given the spike in redemptions and margin calls many funds face, thinks Pierre Pourquery of the Boston Consulting Group. Hedge funds wrote almost a third of all credit protection last year (see chart 2).
Sellers of protection will be watching nervously for a wave of corporate defaults as big economies slip into recession. Standard & Poor’s expects the default rate on junk-grade debt to leap to 23% by 2010. Sovereign debt is looking wobbly too, especially but not exclusively in emerging markets. The cost of insuring against a default by the United States has quadrupled since January.
As rising defaults trigger CDS payments, the effect on other markets is likely to grow. Credit insurers are increasingly having to find money to pay claims that once seemed merely notional. Christopher Whalen of Institutional Risk Analytics, a consultancy, calls these commitments a “liquidity black hole”. Because banks lack the liquidity to cover these positions, they must raise it in interbank markets. This may be keeping the rate at which big banks borrow from each other higher than it would otherwise be, thinks Mr Whalen (though it has fallen from its peak last month). It may also be causing rushed sales in equity and bond markets.
Concern about the damage that the failure of a big swap-seller might yet do has created pressure for the CDS market to be regulated. New York has charitably offered to oversee “covered” swaps—those where the protection buyer holds the underlying bonds; Mr Dinallo labels uncovered CDS trades as “naked”, likening them to abusive short-selling of shares. Federal regulators, who passed up several opportunities to police the market during the credit boom, are circling too.
Dealers are hoping to head them off with a series of initiatives, which have been stepped up recently at the prompting of the Federal Reserve. Chief among them is the creation of a central clearing house for credit derivatives. Several groups, including a dealer-backed venture led by Intercontinental Exchange and a tie-up between CME Group, another exchange operator, and Citadel, a hedge fund, are vying for licences. One or more is likely to be awarded in the next few weeks.
The biggest benefit would be less counterparty risk, since each member firm would face only the clearing house, not lots of partners. Standardised collateral arrangements would reduce the sort of payment disputes that have flared up this year, including those between AIG and buyers of its insurance. This set-up has worked well for trading of energy swaps.
Although it would ease one problem, it may create another by concentrating risk in the clearer—“like the military putting all its artillery shells in a single dump,” says a banker. Any clearer will need to have “tremendous creditworthiness” and iron-clad risk controls, says Craig Donohue, chief executive of CME, which is planning to back its venture with its $7 billion guarantee fund and $115 billion in collateral.
Besides a clearing house, the market could do with more transparency. A lack of disclosure on CDS exposures has frequently led the market to overestimate risks: had it been realised that settlement payments on Lehman swaps would be only $6 billion, rather than the hundreds of billions feared, much of the turmoil in debt markets could have been avoided. To provide more clarity, the Depository Trust & Clearing Corporation, which runs the central registry for swaps, has just begun publishing weekly data on the largest (but not broken down by counterparty).
A streamlining of back offices, which were swamped as trading surged, is also necessary. Only now is the industry discovering the joys of “compression”, which allows offsetting swaps to be torn up. A staggering $25 trillion-worth, almost half of the total, has been binned in recent months. Though this does little to cut the amount at risk, it reduces operational costs and strips away a layer of complexity that has obscured trading exposures. There are plans to extend this tidying-up exercise to other derivatives, including interest-rate swaps, whose gross value, $393 trillion at the end of 2007, dwarfs that of CDSs.
All this will strengthen market infrastructure. But it will also eat into the profits of big dealers, such as Goldman Sachs and JPMorgan, at a time when every dollar is precious. Estimates of their total revenue related to CDSs run as high as $30 billion a year. This will fall as central clearing brings more price transparency, and drop even further if the swaps end up being traded on exchanges. The dealers have long argued that bespoke swaps do not belong on bourses. But contracts, especially those tied to indices rather than single names, are steadily becoming more standardised. Most CDSs, thinks a bank regulator, will move to exchanges “within a few years”.
These quasi-voluntary efforts may or may not reassure those calling for more dramatic intervention. Buyers and sellers of swaps will probably be required to disclose more information. They will certainly have to stump up more capital to trade, making the market less attractive. Indeed, since September the typical margin demanded by dealers has more than doubled. Once reshaped, the CDS market will be a bit duller and a lot less lucrative. But it will also be much safer.
November 8, 08 at 12:21 am
Of course they are upset, Pres-Elect Obama has been bought and paid for.
Just wait and see if he actually does anything good for our nation and economy. Then he will really be in the dog house.
Best regards,
Gail D
November 8, 08 at 12:32 am
[…] kid crash-the-market Barack Obama who wants to take your hard-earned money and give it to other people whom he himself won’t give […]
November 8, 08 at 12:38 am
If you happened to drive by Las Crucen Lou Schrader’s house Wednesday, you probably saw his American flag flying upside-down on a pole in the front yard.
It wasn’t by accident.
Schrader, 59, flew the flag upside-down for a day in protest of the election of Barack Obama as president. He’s calling the move a political statement against Obama’s platform.
Schrader, who lives on Ethel Avenue, said he also flew his flag upside-down both times Bill Clinton was elected.
“We have descended into a one-political-party nation,” he said. “The Democrats have taken over everything. We’re going to be taxed out of existence.”
Schrader assures his action was not racially motivated.
“It’s not that I’m a racist; I just don’t like this guy as an individual,” he said. “Some of the things Barack Obama said during his campaign has scared me to death, (such as) “let’s spread the wealth.’ Excuse me, that’s socialism.”
Las Cruces police showed up at Schrader’s home Wednesday to check whether the flag was a distress signal.
According to http://www.ushistory.org, there aren’t penalties for violating the flag code, and the U.S. Supreme Court “has ruled that politically motivated violations of the flag code are protected by the First Amendment.”
November 8, 08 at 12:43 am
Redemptions, rumors and losses continue to dog some of the biggest hedge funds, The Wall Street Journal reports, including:
* Ken Griffin’s $16B Citadel, whose main fund is down nearly 40% this year. The firm denies rumors it is receiving collateral calls from its lenders, who confirmed that denial, the WSJ reports.
* Redemptions ranging from 6% to 33% of total assets have hit big funds, including Icahn Partners (which manages $7 billion), Highbridge Capital ($17B), Och-Ziff Capital ($28B), Plainfield Asset Management ($5B), Trafalgar Asset Management ($3B) and Blue Mountain Capital ($5B).
No tears are being shed for these hedge funds but redemptions — i.e., investors asking for the money back — means hedge funds have to sell assets, which can hurt performance further, leading to more redemptions, and so on.
This downward spiral in the hedge fund community, which had $1.5 trillion under management in early 2007, is one big reason for the continued downward pressure on the market.
The size and scope of hedge fund loses and redemptions – and the potential for more to come — is a major wrinkle in the “market is cheap” mantra being repeated so often lately, including by some legendary investors.
November 8, 08 at 9:49 am
Anyone who has the power to make you believe absurdities has the power to make you commit injustices.
— Voltaire
November 8, 08 at 10:08 am
BAGHDAD — Two Iraqi insurgent groups called on President-elect Barack Obama to withdraw from Iraq and Afghanistan and abandon the war on terror, an Internet monitoring service reported Friday.
Abu Omar al-Baghdadi, self-styled head of the Al Qaeda front group the Islamic State of Iraq, said in a speech posted on an extremist Web site that it would be better “for you and us” to “withdraw your forces” and “return to your homes,” according to the SITE Intelligence Group that monitors militant Web sites.
Al-Baghdadi blamed the global financial crisis on the wars “launched in Muslim countries” and said he was issuing the call on behalf of “my brothers in Iraq, Afghanistan, Somalia, and Chechnya,” SITE said.
In a separate statement, the Mujahedeen Army, a Sunni insurgent group, urged Obama to withdraw U.S. troops from Iraq or face “days that will be more difficult than the nightmare experienced by his predecessor.”
November 8, 08 at 12:20 pm
Do you realize your argument makes no sense? It states:
1) Stock market rallies when Obama has high chance to be win, because people are confident in his economic policy.
2) Stock market crashes when Obama actually wins, because… Uh… Um… People are… Confident… Ah, heck.
Oh, now I see. Well that solves the mystery then.
The market is reaping as quick a profit as it can, because it is confident that the economy – and share prices – will rise sky high under the future Obama administration.
Wouldn’t want to be holding lots of shares that will be much more profitable in a few months, now would we? That would be poor market strategy.
I don’t think you’ve posted more than one or two links since you first came here.
It’s your responsibility to gather together facts to prove your argument. Otherwise, people will ignore them. Obama, Obama OBAMA! can be bothered to. That’s why I discuss with him/her much more intellectually than with you.
No wonder you don’t blog. It’s hard work searching for info and editing the layout and images, I can tell you.
I take offense at your insinuation. Show me where in my post I state that Obama is the cause of the stock market drop.
Look closely: I am merely stating facts – that the Dow happens to fall precipitously the day after Obama wins, with graphs to boot, and that this falls is record breaking in many ways.
In fact, the original premise of my post was: If Obama won the Presidency, would the American stock market fall?
That’s what I pondered, and that’s what was shown to be. How is that ‘intentionally misleading’? If you people want to think Obama is or is not directly to blame, that is YOUR pregorative.
But anyway, the proof is in the next week, the next few months and the next four years. We shall see if Obama transforms America into a Socialist paradise, or a Socialist Zimbabwe.
November 8, 08 at 12:33 pm
Just wait a bit longer. Obambi`s unexamined past is going to haunt him, and the real obambi will be paraded for all the world to see.
November 8, 08 at 12:38 pm
Business has no confidnece in Obama and the market sells off in anticipation of obama`s higher taxes as he redistributes the wealth.
Employment goes down, why not if their profits are being cut to redistribute wealth. Eventually budinesses have to pass the higher taxes to the consumers, so prices go up and purchasing power goes down.
Good luck to all the suckers who are exalted by obama as they turn to despair.
November 8, 08 at 12:46 pm
Obama calmly fielded questions about the economy, Iran and his family’s search for a pet dog. No matter the question, he replied with caution—and one flash of self-deprecating humor when discussing the dog.
His family is looking for a dog that will not trigger his daughter Malia’s allergies. Ideally, he said it would come from an animal rescue shelter, but “obviously, a lot of shelter dogs are mutts like me.”
……………………………………………………………
There he done gone and said it.
November 8, 08 at 12:49 pm
During the Presidential campaign of 1976, Democratic candidate, Jimmy Carter, made frequent references to the Misery Index, which by the summer of 1976 was at 13.57%. Carter stated that no man responsible for giving a country a misery index that high, had a right to even ask to be President. Carter won the 1976 election. However, by 1980, when President Carter was running for re-election against Ronald Reagan, the Misery Index had reached an all-time high of 21.98%. Carter lost the election to Reagan.
http://en.wikipedia.org/wiki/Misery_index_(economics)
November 8, 08 at 1:06 pm
In conclusion, the risk of a hard landing in China is sharply rising. A deceleration in the Chinese growth rate to 7% in 2009–just a notch above a 6% hard landing–is highly likely, and an even worse outcome cannot be ruled out at this point.
The global economy is already headed toward a recession. A hard landing in China will have severe effects on growth in emerging market economies in Asia, Africa and Latin America, as Chinese demand for raw materials and intermediate inputs has been a major source of economic growth for emerging markets and commodity exporters. The sharp recent fall in commodity prices and the near collapse of the Baltic Freight index are clear signals that Chinese and global demand for commodities and industrial inputs is sharply falling. Thus, global growth–at market prices–will be close to zero in Q3 of 2008, likely negative in Q4 of 2009 and well into negative territory in 2009. So brace yourself for an ugly and protracted global economic contraction in 2009.
http://www.forbes.com/opinions/2008/11/05/china-recession-roubini-oped-cx_nr_1106roubini.html
November 8, 08 at 7:57 pm
The senator and his doting Obots in the media have gone to great lengths to obscure what Barack Obama does when he’s not being a symbol: his voting record, his friends, his patrons, his life outside the soft-focus memoirs is deemed nonrelevant to the general hopey-changey vibe. But occasionally we get a glimpse. The offhand aside to Joe the Plumber about “spreading the wealth around” was revealing because it suggests a crude redistributive view of “social justice”. Yet the nimble Hope-a-Dope sidestepper brushed it aside, telling a crowd in Raleigh that next John McCain will be “accusing me of being a secret communist because I shared my toys in kindergarten.”
But that too is revealing. As John Hood pointed out at National Review, communism is not “sharing.” In a free society, the citizen chooses whether to share his Lego, trade it for some Thomas the Tank Engine train tracks, or keep it to himself. From that freedom of action grow mighty Playmobile cities. Communism is compulsion. It’s the government confiscating your Elmo to “share” it with someone of its choice. Joe the Plumber is free to spread his own wealth around – hiring employees, buying supplies from local businesses, enjoying surf ‘n’ turf night at his favorite eatery. But, in Obama’s world view, that’s not good enough: the state is the best judge of how to spread Joe the Plumber’s wealth around.
The Senator is a wealthy man, mainly on the strength of two bestselling books offering his biography in lieu of policy and accomplishments. Many lively members of his Kenyan family occur as supporting characters in his story and provide the vivid color in it. But they too are not merely two-dimensional cartoons. His Aunt Zeituni, a memorable figure in Obama’s writing, turned up for real last week, when the dogged James Bone of the London Times tracked her down. She lives in a rundown housing project in Boston.
In his Wednesday night infomercial, Obama declared that his “fundamental belief” was that “I am my brother’s keeper.” Back in Kenya, his brother lives in a shack on 12 bucks a year. If Barack is his brother’s keeper, why couldn’t he send him a $10 bill and nearly double the guy’s income? The reality is that Barack Obama assumes the government should be his brother’s keeper, and his aunt’s keeper. Why be surprised by that? For 20 years in Illinois, Obama has marinated in the swamps of the Chicago political machine and the campus radicalism of William Ayers and Rashid Khalidi. In such a world, the redistributive urge is more or less a minimum entry qualification.
http://www.steynonline.com/content/view/1465/
November 8, 08 at 11:16 pm
I opine to differ. I don’t think we are involved in any intellectual debate what-so-ever. Did you read the news i have sent them to you? there are many factors that cause the market to crash, the crash you kept referencing about was due to the events occuring in Cisco Systems, the world’s largest maker of computer networking gear.
I do feel that you insinuate Obama causes market crash. What will you think if i have said ‘Palin hinted on 2012 presidency on the same day republican campaign announced Palin thought Africa was a country and that she didnt bother to prepare for Katie Couric’s interview, was on the day that market crash’. of course I wouldn’t have been that idiotic to insinuate Palin’s revelation to market crash, but i am sure you will feel outraged if someone has done something that silly to insinuate palin. 🙂
November 8, 08 at 11:35 pm
Barack Obama said this: “I don’t think that we’re necessarily going in the direction of the Depression,” in response to a question during a visit to a suit-making factory. He said, “There are some similarities, though, to the Great Depression, to what happened back in the late twenties and the early thirties and what’s been happening now, and the biggest similarity is how we’ve been dealing with Wall Street and what’s happening in the financial markets. As your president, my job is to regulate what happens in the financial markets to make sure that people aren’t taking these kinds of risks and that we’re having full disclosure.” Now, I have a question. How in the world is the Democrat Party about to have this degree of an uneducated man run for president of the United States? How in the world do you graduate from the best university in the world and not know more than this about the Great Depression?
For a presidential candidate to assess the current US economy, as showing similarities to the Great Depression and what happened in the late twenties and the early thirties, is mind-blowing. I do not know how you come out of Harvard not knowing anything more than this about the Great Depression. And then, he said the US housing crisis resulted from a lack of regulation and mortgage lenders, investment banks who ended up with worthless assets. Do you know what we’re learning about this subprime business? We are learning that quite a few of these people who are abandoning their homes never lived in them, they were speculators, got caught in a flip. All this talk about people walking away, there’s a term now, walk-away mortgages, people walking away because ostensibly they can’t afford them. They’re walking away because they know they’re going to be made whole. They’re walking away because they don’t have to pay for them. They never lived in these houses, they were flipping them, they were speculating.
November 8, 08 at 11:43 pm
What prolonged a stock market problem was the government getting involved. And their first response was Smoot-Hawley, which was protectionist policies, tariffs on anything that USA imported. Rather than help the economy, it strangled global trade, and this led to the rest of the world suffering an economic downturn. Businesses that suffered the most during all this, because of this, were agricultural, mining, and logging.
The New Deal was supposed to get out of this. The New Deal was supposed to get an active government involved in solving the Depression. It exacerbated it! What got americans out of the Great Depression was World War II. Seventeen percent of the American male population ended up being drafted. That took care of a lot of unemployment. Not all of it.
Rosie the Riveter, women went to work in the factories building airplanes and so forth. It was gearing up to beat the Japanese and the Germans. And, by the way, you might even be able to make a claim, although this is arguable, but you might be able to make a claim that the Great Depression and its exacerbation, Smoot-Hawley and tariffs, might have led in part to the Japanese saying, to hell with America. It’s arguable. But the whole world was thrown into a downward cycle. Not just because of Smoot-Hawley, but the point is we’re nowhere near anything like that today. We are nowhere near anything, and we’ve got Obama claiming the housing market reminds him of the Great Depression. The Japanese needed oil, they needed oil for growth, US had all these tariffs going on, they invaded China for the same reason. And yet what is being taught to these skulls full of mush in even the best universities?
November 8, 08 at 11:46 pm
And, by the way, during the Great Depression, there was all kinds of economic growth. You can go look at charts and graphs of this, but you can find that Southern California, people were migrating to where there were jobs, Southern California, all of Northern California, building Golden Gate Bridge, building the Bay Bridge in the Great Depression, Hoover Dam, Empire State Building, they came in, in four years, and in the case of the Empire State Building, came in on time, or early, actually.
November 8, 08 at 11:50 pm
Obama claims that the housing crisis today reminds him of the Great Depression, which is just flummery. It’s dangerously uninformed. Here’s a guy who went to the most expensive, said to be the greatest university in the world, he’s just ignorant about things. I’m convinced he’s been taught all of his life a left-wing political agenda under the guise of American history. To think that this guy might end up in charge of the entire executive branch, the Treasury Department — think peanuts Jimmy Carter.
From 1976 to 1980, this country was in the toilet. It was in the tank. And there are definite reasons for it. I think people have forgotten or maybe they never knew in the first place.
One of the things in one of these pieces about the Great Depression, the unequal distribution of wealth, the great difference between the rich and the middle class and so forth. And then this guy goes on to blame tax cuts for the rich for leading to the Great Depression. The US Department of Treasury, statistics of income, annual 1920 to 1929. Tax rates in this chart are shown for taxpayers at $100,000 a year. And before 1925, the top rate was even higher than it was. Here’s the bottom line. In 1923, the rich paid 32% of all taxes. In 1925, the rich paid 45% of all taxes. In 1929, the year of the stock market crash, the rich paid 65% of all income taxes.
November 9, 08 at 12:36 am
Actually, I’d be pretty used to it after these past months of relentless Palin bashing in the blogs, media and my own comments section.
November 9, 08 at 12:59 am
Previously I posted up an article which gave an opinion that you responded to — that it could be due to media biases — saw your opinion on that, OK, I might not agree with your standpoint but I do agree you have a similar right to your differing standpoint as well. No problems on that.
But as for this:
http://www.associatedcontent.com/article/1171568/sarah_palin_prank_call_voice_of_deceit.html?cat=62
Excerpt:
…
Sarah Palin was pranked yesterday by a Montreal comedy team, the Masked Avengers from Montreal radio station CKOI, with one of the comedy pair Marc Antoine Audette pretending to be the president of France Nicolas Sarkozy. The audio recording of the 6 minute Sarah Palin prank call is available here.
After 6 minutes of progressively obvious pranking, the comedian finally had to tell Palin that she’d fallen for a prank call. It isn’t the pranksters deceiving Palin, however, but Sarah Palin’s continual effort to deceive the man she believed was Nicolas Sarkozy, the President of France, that should concern American voters.
…
…
What do you make of it and how would you defend it?
Apart from that I still genuinely feel that this site is interesting that I come back here very often. No change on that opinion.
November 9, 08 at 9:18 am
The victim made out to be aggressor…reminds me of hindraf affair and botak syed hamid albar.
Why defend Sarah on that? Amrican voters have already voted for 4 years of fun with Obambi.
She`s not the POTUS elect (who can`t even produce his birth certificate).
November 9, 08 at 9:52 am
WASHINGTON (AP) – Regulators shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19.
The Federal Deposit Insurance Corp. was appointed receiver of Franklin Bank, which had $5.1 billion in assets and $3.7 billion in deposits as of Sept. 30, and of Security Pacific Bank, with $561.1 million in assets and $450.1 million in deposits as of Oct. 17.
November 10, 08 at 4:58 am
DEMOS WANT TO STEAL OUR SAVINGS ACCOUNTS
RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.
http://www.carolinajournal.com/articles/display_story.html?id=5081
Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country to a pack of nit-wits who couldn’t make money running a whore house and selling booze?
November 10, 08 at 7:12 am
In its waning days, the Bush Administration should put the kibosh on any talk of a bailout for the auto industry. Make the next Administration deal with the matter. If governmental power is to be expanded yet again, let’s not have a situation where a Republican Administration gives cover to the Democrats, the consistent advocates of that expansion, by participating in a bailout of the auto industry.
Let Barack Obama and the Congressional Democrats be responsible for this latest proposal to micromanage the economy. And let them be responsible for what follows next.
November 10, 08 at 9:33 pm
Mon Nov 10, 2008 7:55am EST
NEW YORK (Reuters) – Circuit City Stores Inc, the No. 2 U.S. consumer electronics retailer, filed for bankruptcy protection on Monday
http://www.reuters.com/article/topNews/idUSTRE4A936V20081110
November 10, 08 at 11:04 pm
It’s buuuuurrrrning hot: a millionplus hits..1,000,000+.
November 20, 08 at 4:16 pm
Simon, it’s also burning the Obots.
It’s only the beginning of the Barrack Market!
November 20, 08 at 6:50 pm
Obama’s not to blame. Not yet, anyway, though the way the Dow is sliding doesn’t say much for confidence in Obama or his policies. When the whole world is in liquidation…
Does Obama have a magic wand he can wave around?
November 20, 08 at 8:10 pm
The Black Messiah has a new angle now playing to the gallery:
“Few challenges facing America — and the world — are more urgent than combating climate change”
Stop right there! Waging a Don Quixote style battle against the very forces of nature trumps all but a few challenges? Do these happen to include the immediate issue of collapsing international markets and their very real potential to spark a worldwide depression? Or assuring the denial of weapons of mass destruction to terrorists and rogue nations? Or evading the strangle hold our dependency on oil allows those same factions and governments to leverage over us? Or our deteriorating confidence in the safe stewardship of a nuclear weapons arsenal already in the hands of an Islamic State of dubious intent and political cohesion? Or the successful outcomes of wars currently waging in Iraq and Afghanistan? Or resolving our increasingly tenuous relationship with Russia? Or the “poorly secured nuclear material in the former Soviet Union or secrets from a scientist in Pakistan [that] could help build a bomb that detonates in Paris” Obama himself spoke of in his July “fellow citizen of the world” speech in Berlin?
http://www.americanthinker.com/2008/11/obama_outgores_gore_at_climate.html
November 20, 08 at 8:22 pm
Obama Economic Advisor in stock slump:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayIRzsMlT.6k&refer=worldwide
November 20, 08 at 10:30 pm
This year we celebrate the desacralized “holidays” amid what is for many unprecedented economic ruin — fortunes halved, jobs lost, homes foreclosed. People wonder, What happened? One man’s theory: A nation whose people can’t say “Merry Christmas” is a nation capable of ruining its own economy.
One had better explain that.
How the financial markets fell so far so fast will occupy economic seers for years. The path to 50% wealth reductions and the death of Wall Street was paved with good intentions, notably the notion that all should own a house, even if that required giving away the house to untutored borrowers with low-to-no-interest loans.
http://online.wsj.com/article/SB122714101083742715.html?mod=djemEditorialPage
November 21, 08 at 12:43 am
The only thing that will crash if Barack Obama and the radical environmentalists have their way is the economy. M_O_M provides some details:
For Those Who Said He Wouldn’t
Economically speaking, this is total lunacy. But he believes.Nor does he need Congress to act, since the EPA is already dealing with petitions to regulate CO2 as a pollutant. He simply does what he said he would do before the election, which is to regulate CO2 as a HAP. Even farms would have to go through permitting, as would large stores, etc. [Emphasis mine-SW]
Last week an EPA appeals board dumped another coal plant, and said the EPA should develop national rules for CO2 emissions. That ruling is widely believed to have placed about one hundred coal plants in jeopardy, at a time when the US is rapidly running out of electricity. Plants in Utah, New Mexico, Kansas and Georgia have all recently been stopped by legal action.
That leaves the US with no new drilling, no new nuclear plants, no new hydro plants and no new coal plants. In short, it leaves us with no real substantial new energy sources except perhaps plants that burn natural gas. Wind and solar will not do it, nor will biodiesel. Utility prices for electricity are expected to keep rising next year.
http://shrinkwrapped.blogs.com/blog/2008/11/speeding-through-the-dark.html
November 22, 08 at 1:13 am
This says it all, it`s a sign of things to come. Here`s the messiah`s consort dressed up as a black widow:
http://anniesinferno.blogspot.com/2008/11/black-widow-need-i-say-more.html
November 22, 08 at 1:47 am
[…] Found at Scott Hong Blog. […]
November 22, 08 at 11:56 am
Surveys of the academic literature reveal that even left-wing international bureaucracies are producing research showing that bigger government hurts economic performance by misallocating national resources.
Japan’s experience also shows the foolishness of Keynesianism. Throughout the 1990s, Japanese politicians tried to use so-called stimulus packages to jump-start a stagnant economy. But the only thing that went up was Japan’s national debt, which more than doubled during the decade and now is far above even Italy when measured as a share of GDP. The economy, not surprisingly, remained stagnant.
If Keynesian spending doesn’t make sense from a theoretical perspective, and also fails every time it is tried in the real world, why do politicians keep trying the same approach? Your guess is as good as mine, but the answer probably has something to do with the fact that politicians love to spend other people’s money, and Keynesianism is a convenient rationale.
http://pajamasmedia.com/blog/myth-government-spending-stimulates-the-economy/2/
November 22, 08 at 12:09 pm
Drowning men clutch at straws:
Msnbc.com’s Al Olson reports that immediately after NBC News’ report on Tim Geithner likely to be named Treasury Secretary, stocks rebounded sharply. The Dow Jones Industrial Average was trading in negative territory — down about 38 points — before the news. Moments after, the Dow zoomed more than 300 points.
November 22, 08 at 1:09 pm
Yea, almost 500 points up at the close but it’s all about confidence, with the psychological factors more prominent than the substantial. The rally can’t last. Confidence isn’t enough on its own. The markets need to see something that is workable. We haven’t seen the bottom of this bear market yet.
November 22, 08 at 1:27 pm
After being roasted for flying to Congress in their own executive jets to ask for a bail out, GM says it will return two of its five leased jets; it had 7 in Sept. Ford says it “may sell” its 5 jets. Chrysler has no comment. These companies paid huge bonuses last year to their chief executives for losing money. Why haven’t they said anything about asking for a return of the money? Why were they paid such obscene sums for losing money?
Imagine a man getting out of his chauffeured rm1,000,000 Mercedes Benz and holding out a beggar’s bowl?
Sack the top management and restructure.
November 22, 08 at 2:58 pm
Right, Simon, “Confidence isn’t enough on its own.” Earlier at least a coupla fella in MSNBC already said that and now suddenly the rehype about confidence! One moment admission about being in uncharted territory, the next, the selfsame “confidence” canard!
November 23, 08 at 9:02 am
A dead cat bounce, on wiki:
It is derived from the notion that “even a dead cat will bounce if it falls from a great height”.
The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. Journalist Christopher Sherwell of the Financial Times reported a stock broker as saying the market rise was a “dead cat bounce”.
November 23, 08 at 6:39 pm
The IMF’s chief economist has warned that the global financial crisis is set to worsen and that the situation will not improve until 2010, a report said Saturday.
Olivier Blanchard also warned that the institution does not have the funds to solve every economic problem.
“The worst is yet to come,” Blanchard said in an interview with the Finanz und Wirtschaft newspaper, adding that “a lot of time is needed before the situation becomes normal.”
He said economic growth would not kick in until 2010 and it will take another year before the global financial situation became normal again.
The International Monetary Fund on Friday promised to help Latvia deal with its economic crisis after it assisted Iceland, Hungary, Ukraine, Serbia and Pakistan.
But Blanchard said the IMF was not able to solve all financial issues, in particular problems of liquidity.
Withdrawals of capital leading to problems of liquidity “can be so significant that the IMF alone cannot counter them,” he said, adding that massive withdrawals of investments from emerging countries could represent “hundreds of billions of dollars.
“We do not have this money. We never had it,” he said.
The IMF had spent a fifth of its 250 billion dollar (200 billion euro) fund in the last two weeks, Blanchard added.
He also urged central banks around the world to cut interest rates, after the Swiss National Bank made a surprise one percentage point rate cut Thursday.
The central banks “should lower interest rates to as close to zero as possible,” he said.
November 27, 08 at 2:08 pm
The real blame for Republican defeat lies with people like yourself (and Ann Coulter) who have not yet woken up to the fact that the world (and the US electorate) have changed. Your steadfast refusal to accept middle-of-the-road candidates and absolute insistence on the WASP, bible-thumping, family values kind of politician to (so-called “appeal to the grassroots”) led to McCain to pick the idiot Palin, turned the campaign into a laughingstock and could only lead to his subsequent downfall.
Um people like you are the idiots, not Sarah Palin. She had approval ratings of 91% among Republican voters and brought 13% of the GOP vote total. If McCain hadn’t picked her the election actually would have been the landslide that was predicted.
A couple of manufactured gaffes fed to morons like you by the media and you were on your way – without ever considering the fact that Sarah Palin headed the energy commission in Alaska and governed with 80%-plus approval ratings.
Meanwhile your intelligent, cerebral president-elect who thinks there are 57 states he will rule for 10 years, is f****ing the stock market from here to eternity. Guess all those MBAs and financial professionals are just not nuanced enough to understand his wisdom – or else they’re racist. Hey, check out the stats on Alaska’s economy some time and let us know if you still want to stick with the idiotic “Palin is DUUUUMMMMBBB” talking point. A$$hole.
November 27, 08 at 3:11 pm
See also Is Palin Disliked or Popular Among Conservatives? which has dozens of examples and evidence of Palin’s positive effect on McCain’s campaign (which would have been buried long ago without her. Imagine: McCain-Lieberman!)
January 23, 09 at 12:53 pm
[…] Found on BUUUUURRRRNING HOT […]
February 25, 09 at 12:34 pm
[…] Just another moment of doom in a long-running trend of the stock market crashing whenever Obama does ANYTHING. […]
February 27, 09 at 10:48 am
[…] And also: […]
March 2, 09 at 9:24 pm
[…] And also: […]
March 5, 09 at 12:17 am
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August 28, 09 at 4:48 am
Oh man, I don’t think so!
September 25, 09 at 3:40 am
Global Stock Exchanges ‘Celebrate’ Obama With Record INCREASES – Continuously!
Between February 2009 and August 2009 all global stock exchanges all the world’s stock exchanges have increased their local market capitalization of their publicly listed companies by 45.3% or a foreign exchange equivalence of almost thirteen trillion US dollars?
Verify the data!
To verify please feel free to connect to the website of the World Federation of Exchanges
http://www.world-exchanges.org/statistics/ytd-monthly
and go to the statistical section!
Chose the relevant parameters!
Year: 2009 Month: August
Individual data series: Domestic Market Capitalization
Currency: USD (to convert all local currencies in one to compare)
Document type: Excel
Click on Download
You now will get the total figures of each stockexchange and the monthly totals below.
February 2009: US$28’670’368.1 Millions
August 2009: US$41’659’208.4 Millions
Seven months: US$12’988’840.3 Millions or 45.3%
Amazing, isn’t it?
Is Barack Obama the best President of all times?
All global markets and exchanges tend to say YES!
Have a wonderful and successful time!
Best
theglobalchinese
October 9, 09 at 4:50 am
My name is Jonn Pedro, http://jonpedrotralala.com
October 22, 09 at 7:28 pm
nice, is it ok if i use this on one my posts?
November 10, 09 at 3:59 am
Hey, are you going to update this post to reflect $10,200? Oh, probably not, hmm?
Theory FAIL.
November 10, 09 at 12:57 pm
I don’t catch what you mean by $10,200. But here’s an update for you:
Obama’s Massive Failures
November 10, 09 at 1:57 pm
I think John Blanco means the Dow hitting 10,200 points.
November 10, 09 at 2:25 pm
Oh, he means that 10,200…
Unemployment 10.2%.
Debt at 12 + 9 trillion over the next decade.
3.3 million jobs lost since Stimulus. Jobs claimed to be saved nonexistant – literally.
Hope! Change!
November 10, 09 at 8:05 pm
One day, the Dow goes up coz people believe that the worst is over. A few days later, it falls coz people (the same?) believe that there may be a double dip recession..so it goes, like a yoyo; except it is trending higher. When will confidence coincide with the reality that things are getting better VERY VERY SLOWLY, that Obama hasn’t really been responsible for anything productive?
March 22, 10 at 7:57 pm
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August 29, 10 at 6:24 am
This is an interesting article that I think many of you should read, then maybe you will understand better the what and whys of things:
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April 19, 11 at 10:45 am
Stocks sink after U.S. outlook slashed
By Hibah Yousuf, staff reporterApril 18, 2011: 4:42 PM ET
NEW YORK (CNNMoney) — U.S. stocks cut some losses late Monday afternoon, but still finished the session sharply lower after Standard and Poor’s cut its long-term outlook on U.S. debt to negative.
“I would say investors have been anticipating this somewhat, but when the shoe falls, it sends a vibration throughout the market,” said Ron Kiddoo, chief investment officer at Cozad Asset Management.
August 2, 11 at 12:02 pm
Great post. Thanks for the nice read
September 13, 11 at 4:21 pm
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[…]American Stock Exchange ‘Celebrates’ Obama With Record CRASHES – Repeatedly! « LEADING MALAYSIAN NEOCON[…]…
March 6, 12 at 1:38 am
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[…]American Stock Exchange ‘Celebrates’ Obama With Record CRASHES – Repeatedly! « LEADING MALAYSIAN NEOCON[…]…
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American Stock Exchange ‘Celebrates’ Obama With Record CRASHES – Repeatedly! | LEADING MALAYSIAN NEOCON